Bitcoin (BTC) has remained confined within the $90,000 to $100,000 price range for a third consecutive week, with only a brief ascent past the $100,000 threshold on December 5. This stagnant price journey has caused disinterest among traders, attributed to two primary factors. Firstly, the flow of liquidity into the cryptocurrency market, particularly through channels such as spot exchange-traded funds (ETFs), has diminished considerably.

This slowdown has tempered the bullish drive previously witnessed.

As detailed by 10x Research, the market liquidity impulse index, which measures stablecoin mints, ETF inflows, and futures market changes, has reduced its weekly fluctuation to $7 billion, a stark contrast to over $15 billion seen last month. "The deceleration in liquidity growth might elucidate Bitcoin's struggle to consistently trade above $100,000," Markus Thielen, founder of 10x Research, noted to clients on Wednesday. This liquidity metric has been registering lower peaks recently, diverging negatively from Bitcoin's pricing.

Stablecoins, often pegged to currencies like the U.S. dollar, facilitate cryptocurrency purchases, while ETFs offer exposure to the crypto market without direct ownership. CME's cash-settled futures serve a similar role. In addition, a lesser-noted factor is Nvidia's (NVDA) deceleration, a leading chipmaker and a key player in artificial intelligence (AI) and risk assets.

Since the introduction of ChatGPT in late 2022, NVDA became a barometer for both sectors. Despite a robust positive correlation between BTC and NVDA since late 2022, especially outside of last summer when supply concerns hindered BTC's performance, the three-month correlation remains at 0.6. Analysts at TheMarketEar observed that BTC's recent rise from $70,000 to $100,000 mirrors NVDA's trajectory, driven by a shared investor psychology despite limited shared fundamentals. They further mentioned that NVDA remains one of the rare stocks outperforming BTC both this year and over the past five years. BTC has climbed 130% in 2023 compared to NVDA's 172% gain, as per TradingView data.

However, NVDA's growth trajectory has wavered since mid-November. Price movements seem to suggest a possible bearish head-and-shoulders reversal.

The one-year put-call skew indicates neutrality, with calls now trading on par with puts, as opposed to a strong bullish bias earlier, according to Market Chameleon. It's worth mentioning that the crypto market has expelled much of its bullish exuberance, as highlighted in the recent Crypto Daybook Americas. With market leverage reaching healthier levels, Bitcoin might attempt another push toward the $100,000 mark. Yet, the durability of such a breakthrough likely hinges on renewed liquidity influx and overarching risk sentiment.